The star has given the complete sum of his £25k award cash to the trust for venues, which works to save the Britain's grassroots live music spots.
Fender was presented with the prize on 16 October as his third album his work was declared the top album of the last 12 months.
The musician has chosen to hand the money over to the MVT, in acknowledgment of the essential function local spots had in his beginning days.
"I couldn't be pursuing this success if it weren't for all the gigs I did around the area, and further afield, when I was beginning," said Sam Fender. "These spaces are iconic, but they are in difficulty."
Beginning in 2023, over 150 of these spaces have ceased operations – roughly one-sixth of the entire UK sector.
Over the past year, major artists like Pulp, Coldplay, Katy Perry and Sheeran have all aided the Music Venues Trust in its initiatives to support the industry, by applying a minor surcharge to their ticket costs, which benefits local stages.
Fender also participated, generating more than £100,000 on his recent tour to assist numerous grassroots venues across Britain.
The money assisted spaces that were facing potential shutdown due to challenges stemming from flooding, fires and bereavements, as well as permit problems, court cases and noise complaints.
Additional spaces received monetary aid in upgrading infrastructure and gear that directly benefitted artists and concertgoers.
"The concept that funds from performances in major spaces backs the local stages, where it begins for performers like me, is just logical," Fender has commented.
The musician is far from the only musician to contribute his Mercury Prize winnings to worthy causes.
Back when the band won the prize in the year 1996 for their release the album, lead singer Cocker announced that the band would donate their winnings to the charity War Child.
In 2002, artist Ms Dynamite divided her bounty among multiple charities, like the NSPCC and a Sickle Cell organization.
"I also gave a thousand pounds to the center, to their gymnastics program, because I did gymnastics when I was a child and they lacked new equipment," the artist shared with a publication.
In recent years, Ezra Collective donated their winnings to the community center that supported their group, as well as other local music groups.
Also 1994 winners M People contributed their winnings to a multiple sclerosis charity after a close contact was identified with the condition.
"The victory was ample," remarked vocalist Heather Small. "The prize was the extra but we didn't need the extra, because we had the main prize. So our victory affected somebody else's life."
Last week, the Music Venues Trust shared it had saved two grassroots venues in the South East, by bringing them into community ownership.
The first in the city and The Croft in that location were acquired under the community ownership scheme, which is backed by Arts Council England and enthusiasts who acquire "stakes" in the venues.